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1. Dalata rejects Pandox-Eiendomsspar takeover bid
Dalata Hotel Group has rejected the June 3 takeover proposal by Stockholm-based hotel owner and operator Pandox AB and Oslo-based Eiendomsspar AS, stating the offer “materially undervalues [Dalata] and its prospects.”
The two Scandinavian partners proposed an offer — which they need to officially submit by July 15 — of €6.05 ($6.90) per share, a 5% premium on the shares’ current value, which would value the Irish hotel firm at €1.27 billion ($1.45 billion). At press time, Dalata’s per-share price is €6.12.
2. IOI to take full ownership of $2 billion South Beach Singapore from CDL
Malaysian firm IOI Properties Group has agreed to buy the remaining 50.1% stake in the mixed-use South Beach Singapore from its partner, Singapore investment firm City Developments Limited. The two companies announced the deal is for an estimated sale consideration of 834.2 million Singapore dollars ($647.5 million).
The deal for the property, which contains the 634-room JW Marriott Hotel Singapore South Beach, places a value on the asset of SG$2.75 billion. CDL’s Group CEO Sherman Kwek said the transaction gives a strong boost to CDL’s efforts to accelerate capital recycling so as to reduce gearing and redeploy capital.”
3. Victoria Hotels sells two Spanish assets for €74 million
Investment firm Victoria Hotels & Resorts have sold to an unnamed private investor two Spanish hotels for a combined €74 million ($84.4 million), which it said represented a “95% capital gain over their initial value,” Europe Real Estate reports. Victoria Hotels' principal sponsors are Bankinter Investment, GMA Capital and Meliá Hotels International.
The deal for the 102-room Innside by Meliá Zaragoza and 262-room Innside by Meliá Palma Bosque has, it added “generated a combined unlevered internal rate of return exceeding 25%, far surpassing the vehicle’s target of 9% leveraged returns.” Victoria acquired the two hotels as part of an eight-hotel portfolio deal in July 2021.
4. US increases steel tariffs to 50%
The increase in tariffs on international steel imports into the U.S. from 25% to 50% starts today, another twist in the continuing arguments and threats among major global economic and manufacturing sectors. The BBC reports the United Kingdom is spared the increase, that is, unless the U.K.-U.S. trade deal signed on May 8 does not come into force. U.S. President Donald Trump said the move is required to offset what he sees as unfair international business practices.
The New York Times reported that the tariff increase has angered U.S. trade partners. It said the “higher levies have already rankled close allies that sell metal to the United States, including Canada and Europe. They have also sent alarms to automakers, plane manufacturers, home builders, oil drillers and other companies that rely on buying metals,” a supply chain that might affect hotel construction.
5. Lagos, Nigeria, rolls out hotels licensing scheme
The state government of Nigeria’s Lagos region announced new licensing laws and procedures for hotels on Tuesday, with the rules also being extended to food and beverage and other hospitality offerings.
Toke Benson-Awoyinka, Lagos’ commissioner for tourism, arts and culture, said the government's aim is “to improve safety protocols and environmental management practices and enhance the overall visitor experience at the state’s numerous coastal attractions.”
Benson-Awoyinka said the new regulations are designed to integrate technology into the regulation process. They will also create an inventory of hotel rooms, nightclubs, bars, lounges and beach resorts operating in the state.
Lagos is Nigeria’s business center and largest city by population, with an estimated 21 million people, but it ceased being Nigeria’s governmental capital in 1991.